archTIS Limited (AR9) Earnings Call Transcript & Summary

First of all, welcome to the archTIS Q4 investor update everyone. My name is Daniel Lai. I'm the Managing Director of archTIS, and I'm joined today by the relentless Kurt Mueffelmann, Global COO and U.S. President. So I'd like to acknowledge the traditional custodians of the land, which we gather today and pay my respects to the elders past and present, and I extend that respect to any Aboriginal and Torres Strait Islander who have joined us today. With our full year audit report due next month, we wanted to provide investors with a brief quarterly update to highlight some of the exciting developments of the last quarter as well as an insight into FY '23. We will provide a full audited analysis and presentation on the FY '23 strategy and results in our August webinar. [Operator Instructions] So let's begin. So let's jump into the highlight for Q4 '22. I'm happy to start with the announcement of the largest sale in the company's history of $7 million with the Australian Department of Defense to extend Kojensi. We'll drill down to that in a little bit of detail later in the presentation, but we also continue to drive high-margin repeatable revenue and overall revenue was up 58% quarter-on-quarter, which was a great result. Licensing revenue went up 91% on a prior comparative period, and of course, strong ARR growth with 68% prior period quarter comparison as well. We remain focused on being capital efficient through the quarter, and our operating expenses have been consistent for the levels of our growth that we're investing in. We finished the quarter with $6.6 million and with an additional $2 million collected post period. So a strong cash balance to finish. Importantly, due to the increase in committed revenue and our expected cash receipts, we expect to halve our cash burn in FY '23 from the prior year. Finally, we have a positive growth outlook for FY '23 in both revenue and cash receipts. And let's hand over now to Kurt to dig a little bit into the financials a bit deeper. Kurt, over to you.

Yes. Thanks, Dan, and good morning, everybody. Good evening to the people in the U.S., and I guess it's now morning over in the U.K., which, again, I talked to some people last week about this. So overall, the quarter was -- quarterly revenue dropped a little bit from the prior quarter, but licensing revenue and overall revenue was up nicely, where revenue is $1.4 million. We had -- saw the drop in revenue, the drop in services as we continue to really focus on leveraging that kind of more profitable licensing sales, which opportunistically align our business as we go forward. We delivered strong quarterly licensing revenue of $700,000, which was up 91% from the prior comparative period. And licensing growth was really highlighted by ARR of $3.3 million, which is a little bit below 70% from an increased standpoint. As we look at kind of demonstrating how we're operating our leverage within the business, we maintained our operating expenses at similar levels to the previous 3 quarters, which is really where we want to be. Outside of the increased costs associated with some insurance and travel costs, other expenses of $2.9 million were mostly flat and comprised of things such as staff and contractor costs, administrative and corporate costs, advertising and marketing and product manufacturing operating. As Dan mentioned, we finished strong from a cash perspective at $6.6 million, and we did collect $2 million of additional cash collections and receipts post the close of Q4. For the full year, on an unaudited basis, archTIS delivered revenue of $4.6 million with a 70.5% gross operating margin, which was in line with our guidance at the beginning of the year. This is highlighted by $2.6 million in licensing revenue, up in a triple-digit fashion of 126% from the prior year. Operating expense investments in the business were $10.9 million for the completed year and further analysis and audited results will be released to the market in late August in accordance with our ASX year-end reporting requirements. So again, really trying to drive that high-level, high-value licensing revenue that we see that's driving -- the ARR that's driving the repeatability and that's driving the more predictable cash flow. And we really see that as we get into the way that we're driving business across customers. And with Dan, with the big deal that we had with defense, there's some interesting metrics there that you can talk about the deal and then the metric itself.

Yes. Thanks, Kurt. Look, I think this is really critical. Over the last 18 months, archTIS has stated that it would focus on becoming the premier provider of policy enforcement to global defense organizations and companies that support them in that defense industrial base and those deals with the Northrop Grumman towers, et cetera, which have been expanding and growing and that's really important. And with our pedigree in the Australian Department of Defense, it was fantastic to deliver the largest deal in the company's history. And this deal is with an area of defense that's going to extend the instance of Kojensi in a high-growth area of defense. So we expect to see not only a network growth effect in the Australian Department of Defense, we expect to see that engagement grow over the next 12 and 24 months and really entrench ourselves as part of the information security fabric of defense moving forward. And we've all just -- I've said it many times before, it's all about capturing as much of that $15 billion over the next 10 years with the defense is spending on information and cybersecurity and that's just going to continue. Most importantly, it's a validation that, that strategy is working. And it comes off the back of our announcement as part of the winning consortium with KPMG to deliver the one defense data strategy. Now that data defense strategy is for the whole of defense, whether it's their defense housing, their health records, tactical drones to the headquarters, all of those aspects of it are now being delivered by that KPMG consortium which won $233 million worth of work in the first tranche. Now our role in that is going to be initially a piece of work for the discovery phase, which is where we're helping Department of Defense define how the work packages will be formed and how they will spend that $233 million. So it will start small, and it will continue to grow. Most importantly for us, we are providing the data -- the resources for the data security architecture. And I need to emphasize how important that role is in achieving our goals inside of defense. It is a fantastic opportunity. This is on top of a number of trials in other areas of defense and continued accreditation processes for Kojensi at the secret level, and it validates our overall strategy and that we are winning the Australian Department of Defense. The deal itself is 2 years' worth of licensing a $3.4 million, services and hardware $3.6 million, and as I said, we expect these things to grow in this high-growth area across that contract. And the outlook is really positive in terms of all of those cash receipts being delivered in this financial year, which really gives us a great platform for growth for FY '23 and support -- that is cash receipts support our ability to reduce our overall cash burn as well. So are there evidence of the success that we're achieving with NC Protect, of course, is the use case from defense, and I'll get Kurt to talk you through that use case, which defense very rarely endorses use cases, and they've done one for NC Protect in the way that we secure the deployed environment.

It's nice to see. As we've always communicated, our strategy is really to focus on kind of our home turf of Canberra and really focusing on the Australian defense department, where we have real strong requirements and needs from a use case perspective. And you see both Kojensi and NC Protect are really playing a forefront manner in the way that defense is looking at it from a data-centric standpoint. And so at the end of last fiscal year, we had some large orders that we announced to the market that were a 4-year deal and a 5-year deal that totaled $1.5 million and through the hard work of our technical and services teams and working very closely with defense. Defense actually is now providing us with a referral and reference back into other agencies across Australia as well as other agencies on a global basis. We'll talk a little bit about that in the pipeline as we talk about the Microsoft revenue stream that we're exploring and looking at. But really, the Department of Defense is really validating the technology that they brought into the mix and how they can secure things such as SharePoint, how they can secure Office 365 and leverage the existing Microsoft stack, particularly around attribute-based access controls in the way that archTIS NC Protect product really drives that to market. So being able to walk in with that and being able to send it across to Microsoft from a field as well as from the industry leads on a global basis really adds the credibility and validation to what we do today. And it actually provides that next step in moving the deals forward. And people are saying, well, who is using your product? But we all know in the security space, that's very difficult to get validation for products. I know there's frustration about the lack of announcements about product announcements and wins and things, but at the end of the day, customers generally do not want to communicate what they're using for security software out in the industry. Defense has really stepped up, and now we're able to take this into and export this out into other areas as we continue to drive the business forward. So we're really pleased on where that's going. And that's carried into some of the other areas that we continue to see. Dan, maybe talk a little bit about Kojensi SaaS because that was really the shining star for the quarter in and of itself.

Well, we're sort of starting to give away all of the connecting of the dots for the August stuff, aren't we? I mean the 100% growth in Kojensi over the last 12 months has really been about, again, that defense industrial base and people coming on, whether it's been driven by compliance, whether that's the defense industry security provider compliance or whether that's an export control compliance or whether that's just a need to consolidate a consortium and deliver across Department of Defense, the capability uplift, but we've seen a very strong inquiry. I think the pipeline is at a historic high across the global business, and in Australia, and that's starting to reflect that we've matured as a business. The marketing has matured. The branding has matured, and the need is clearly out there and it's starting to drive that network growth effect on the SaaS platform, which is just fantastic.

And that carries across into other areas as well. We've talked about how do we continue to expand into other geographical regions. So during the quarter, we welcomed a new partner in Singapore, i-Sprint. They came to us not only through a Microsoft Co-sell opportunity, which was directly introduced to us through one of the Microsoft industry advisers. So it expands our APAC expansion into Singapore, but they also brought across a customer with a 3-year NC Protect license. So that's 3 years of recurring revenue that provides a much more predictable, low churn environment for us. So all the products really continue to deliver that predictable revenue and cash receipts by low churn and increased license expansion. So we're really pleased about where those opportunities are going, and we continue to drive that across the globe. Again, here's a sampling of the number of deals that we closed across the various regions that are out there, whether it's across defense and industry, whether it's across manufacturing or some of the life sciences that are out there, you really see the wide array of solutions that the product is able to really drive. And that's one of the areas that we look at, right, is how do we balance that between where we really see our key bread and butter are focused on defense and defense industrials versus all the other opportunities that are out there today. So we're really staying focused to where we see our more immediate wins, how we can close business in a more timely manner and really drive that ARR, drive that revenue number and drive those cash receipts as high as we can. So we're really pleased about kind of where those customer bases are going as we continue to drive forward.

Just going to say that, that i-Sprint partner in Singapore is really just the tip of the iceberg there. It is an amazing market, which we haven't just breached and we're very excited about that for the future. And obviously, we need to get that right. It's a different cultural marketplace, but the opportunities there are very -- we're very optimistic about the opportunities in Asia.

Yes. We mentioned a little bit earlier about the great opportunity we have with defense being a referral for us, and that's really driven expanded pipeline across Microsoft. We've done a lot in a number of significant co-marketing and co-presentation opportunities, particularly in the last 45 days of the quarter. Our VP of APAC, Matt Kluken and myself, we are at Eurosatory, which is the largest defense show in the world, and we were actually exhibiting and presenting with Microsoft there. And so we have the ability to meet with all the geographical industry leads. The 15 of them that were out there at the show as well as providing some key executive briefings to the corporate, Vice President of the actual area for Defense and Intelligence as well as the corporate CTO for Microsoft. So we're getting the archTIS name out there. And Microsoft is actually pushed -- coming back with us and helping us. We went out, and we actually coproduced an e-book around data-centric security and is the top producing e-book for Microsoft out there today within the security space. So we're really pleased to see that. And Microsoft is coming to us for presentations. I personally did a sales kickoff for the new fiscal year for Microsoft. That was actually sent out to over 20,000 field reps to Microsoft, talking about the value of the partnership that the NC Protect product and archTIS can bring to the stack within the Microsoft product offerings. And then we also had the ability, and we were invited by the Defense and Intelligence Corporate Vice President, where I presented at Inspire, which is Microsoft's annual fiscal year kickoff of their entire partner network. And we really had a really exciting talk about where we're going and the partnering opportunity that Microsoft is providing us, but it's really about getting in and how we're enhancing Microsoft opportunities, how we're driving additional pipeline and how we're adding value to what Microsoft brings. And so we see that as some really exciting opportunities as we drive into FY '23 and that continues with -- yes, go ahead.

What are you leaning on there? You look very smart in that photo. What -- you're not leaning on a missile launch, right?

And that thing, yes. Yes, that's an automatic gun that shoots 1,000 rounds per second, and it's all AI driven based upon movement out in the field. So yes, it was a pretty interesting technology out there at Eurosatory. So I guess one of the things from a product innovation and technology perspective that we continue to work with Microsoft on is, we announced the market that we are part of the Azure marketplace. And so now, Microsoft has the ability to distribute our products across all their technologies, and this is going to be done similar to the way you would download an app on the Apple Store. It's not obvious as simple as we're an enterprise-based product, but what it helps with is the way that we can get around some of these longer procurement and vendor onboarding opportunities. And so by partnering with Microsoft and integrating our products and technologies into the commercial marketplace as well as the government marketplace, we're able to really drive what those actual procurement steps are. And so when we get a buying decision going forward, we'll be in a much stronger position to close that deal in a more timely manner. So we're really excited that the development team, work very closely with the security teams and the onboarding teams over in Redmond, and that relationship continues to be very strong as we drive the business forward. So Dan, do you want to start a little bit about kind of our internal employee cost?

Yes. Look, we call it archUP. And what we've done here is obviously, we value the community that we service and their support and everything else like that, and we invited our employees. And what we've done is enabled our employees to put forward a recommendation for $1,000 a quarter to support a charity of their choice and it keep them engaged with the business just on -- not just because of the hard work that they're delivering and the growth that they're providing and their dedication, but that connection back to the community and making sure that we're supporting that community, which supports us as well locally in Australia. And of course, we've all been through COVID. We're still suffering from that. There's been a lot of issues and homelessness as well. And most recently, we supported Oz Harvest with $1,000, which was nominated by Marcelle Newbound, who is our Global Customer Experience Lead. So it's something that we're very proud of doing, and I think it's worthwhile. And I thought that shareholders should know that we're doing a little bit more than just a business with defense and manufacturing. And while we've got our eye on the price, we're still out there supporting the community as well. So executing on our strategic growth. Well, with the updated guidance and securing that defense deal, validating our strategy, the way that we're executing, the pipeline growing at an all-time high, I think we -- you continue to see archTIS doing exactly what it said it would do in terms of executing on its strategy. And right now, I think that we're probably executing that better and more consistently than the Australian Reserve Bank with their interest rates. And so I think we're not doing a bad job of that. We're going to continue to be focused on government defense industry and the businesses that support that. We see that ability to export and the activity to export that into the U.S. and the U.K., and it's the European market. We're having success there. It is one of those traditional areas that we think is predictably recession proof. Spending is at an all-time high and the geopolitical situation is going to continue. The cybersecurity themes are going to continue. It's an area we just have to win and dominate, and it's something that we're very focused on doing over the next 18 to 24 months to really ramp up the business in terms of its growth. We're going to continue to build those alliance partnerships. These things take time. We are here executing a serious strategy for serious shareholder value, and we're doing it absolutely as we said we'd do it. Now building up those alliances with Thales. They're huge organizations. To get across the whole of the Microsoft ecosystem takes a tonne. We have to win people over all the time. We introduced to new areas. We have to win those people over. And we're doing all of this with a small company of 50 people. So we're really punching above our weight here, and we're going to continue product innovation. We are still solving problems that just cannot be solved. I would ask all of you to go back and have a look at that slide on that use case and have a look at the quote from the Brigadier General Warren Gould. Basically, what he says there is, we solve problems they cannot solve. And that's a great place to be in the marketplace, and we need to continue to innovate our products to lead that marketplace, but also address it so it can expand into that mass Microsoft market. So I think we're going to continue down that vein. Thank you. Kurt?

Yes. So when we look at kind of our outlook and the recent defense one really has provided us with that kind of positive line of sight into FY '23. If we take last year's unaudited revenue of $4.65 million without really accounting for any new sales this fiscal year so that's 0 new sales, we're going to see a minimum revenue growth of 60% to at least $7.5 million. So just think about that. So it's the late July right now, so we're not even a month into the year, and we're going to actually already have locked down 60% revenue growth over where we were last fiscal year to $7.5 million. Now the revenue is directly attributable to obviously the defense force, which is huge with the recent win, but there's significant levels of deferred revenue on the balance sheet as well as committed contracts throughout the year. So we feel really strong about kind of that bullish aspect of where we can take revenue and we see it. When we look at that, we really do have line of sight into that triple-digit growth of where we can take the business from a top line revenue standpoint. And that's going to be supported through the cash receipts. Cash receipts themselves are expected to be, again, at a minimum of $9.5 million without taking any additional sales, renewals or any other receipts into play. $7 million of that will come from defense and additional amounts will be locked down through our existing accounts receivable and items that we have on the balance sheet. So we really see that line of sight into, again, strong revenue and strong cash receipts. And then you start to look at kind of where do we go with the business that the cash receipts combined with the continued and fiscal discipline of flat operating expenses across the last few quarters really allow us to decrease our monthly cash burn. It's anticipated that we'll actually have that cash burn during this fiscal year, and we see that in the first half of the fiscal year and really carrying that down. This is an important step for the company as we continue to validate and scale the market while providing efficient capital management, not trends towards cash flow neutrality. So again, we really feel that this is really a line of sight area that now we can really focus on continuing to execute on running the business as we drive it forward and that we know that the revenue is going to be at a significant jump going forward as well as the cash receipts are going to be there to support that. So Dan, maybe you can take us through kind of the area here.

Yes. Look, I think we're great value still. I think we've got a great repeatable growth model. I think we've demonstrated that we've got a low churn rate. We've got products in demand. We've got a fantastic opportunity to really execute over the next 12 months. And we've invested in that global infrastructure, which takes time to set up. It takes time to get those salespeople active in selling and building up and executing and particularly, building those alliances, as I mentioned before. But look at the type of customers that we are winning. We're out there to be trusted to secure the world's most sensitive information, and it's what we're actually doing. So I think that we've got established products. The future is looking good. Really, it's about executing and executing consistently now, closing deals. And I think that's where we have got all of our team highly focused on achieving over the next 12 months. So with that, I would also like to mention how I see the macro situation as well. And yes, we've got companies running. In fact, we've got high inflation rates. We've got wages expected to increase. There's talk stagnation and recessions and everything else like that. The way that I look at it is, companies are going to be much more astute with how they invest their money. And one of the areas I think we're going to continue to see investment dollars being driven into is productivity. Things that are going to produce great productivity returns for those organizations for them to make sure that they can stave off bad times. And I believe that's going to continue to see a massive investment in digital transformation for supply chain, manufacturing, defense, intelligence, government and industry. And so we're feeling quietly confident in terms of the outlook. We are still focusing on growth for the company, and we think the growth company is going to be looked at in an even more positive light if they can grow through over the next 12-month period and will be rewarded for such. So I think we're a great value. Over to you, Kurt.

All right. Great. So why don't we open it up to a couple of questions. Team, thank you for the hard work. Could you give us a brief overview of your vision of the next 3 to 5 years? So Dan, I think you started to talk a little bit about that. We focused on this year, and we're going to talk a little bit more in the August webinar, but maybe just touch briefly on what the next 3 to 5 years may bring.

Look, for us, it has to be about accelerated growth. We're kicking down the doors and making -- breaching into all of these different spaces. But what we want to do is, as I said, dominate the defense -- the global defense market and the defense industrial base is the premier policy enforcement product for data-centric security in the world. That is quite simply the goal over the next 5 years. I think you'll start with what we will do in the August webinar is to start to tie down and explain the strategy and how we're being successful with that and how we expect to export that globally, but all the pieces are there. I think there's a few people on this call and out there in the investor community that have been looking at this and already connecting the dots.

All right. Great. A couple of questions on kind of U.S. defense. Has the U.S. DoD indicated they will or would trust an Australian-based company such as Kojensi with the sensitive data as opposed to a U.S.-based company?

Well, we are a U.S.-based company. Although we're an Australian-headquartered company, we have a subsidiary over in the U.S., which Kurt heads up and is doing business. There does not seem to be any hesitation engaging with this because the problem that needs to be solved is such an important one. And again, I go back to that quote from the Brigadier General in the Australian Department of Defense, the same problem, the same issues are being -- have to be addressed in the U.S. defense arena.

Yes. I mean we're seeing that across multi-coalition forces...

Yes. [ Just on a private sale ]...

We're seeing that across multi-coalition forces, whether it's Five Eyes or any of the other Pacific agreements that are going on right now. And in fact, in one of the use cases that we're talking with the Australian Ministry of Defense through the recent deal is, how do we communicate more effectively on joint task forces with the U.S. itself. So that's a leading indicator to us that there is acceptance in there. We go through the certification. There's another question, Dan, around certification. So if you want to tackle that at a moment. But we're really seeing that in Kojensi, and obviously, with NC Protect, we really see that as coalition forces look at things such as the issues that are going on in the Ukraine and how to share sensitive information. We know that we're out in the front lines with some of the Australian and some of the other U.S. components that are out there in sharing of exercises -- military exercises that are using NC Protect on a day-to-day basis in communicating the sensitivity of orders being delivered and what have you. So there's some neat stuff going on around that cross coalition.

Yes. And I was just -- 2 weeks ago, I was in the Associate Secretary's Office of the Department of Defense. He's responsible for ICT and services and the data strategy, and I can tell you that he's very focused on what can we do for sharing of information across the Quad, across AUKUS, across the Five Eyes. This is just being ramped up at the moment. And we are -- sorry. Kurt?

Yes, sorry, I had a delay on my headset. And that's carrying across into the pipeline, right? And so when we're able to bring these references across into Microsoft, we're seeing actual POCs and actual opportunities surfacing in a much more -- in a faster manner across governments such in the U.S., as in Canada and the U.K., and those POCs at some point are going to start to bear fruit. We really see that, and that's what Microsoft is really helping us get through is weaving our way through that. Again, when we deal with the organizations as large as the U.S. Defense Department, it's difficult for a company such as AUKUS to break through, but through the partnership with Microsoft that allows us to short-circuit some of the longer sales cycles. And listen, no one is more frustrated than me about a larger U.S. deal that's out there today, but having done this for 25 years, it takes time and Microsoft is short ending that drive for us as we continue to move forward. So Dan, there's obviously a number of questions. With the $6.6 million that we had at the end of the quarter, the $2 million that we brought in, there's a number of questions about where do we see cash going? Where do we see a potential raise requirement in the future? And kind of how we're going to look at managing cash burn and OpEx as we drive the business?

Yes. Look, we'll always do the right thing by the business. I mean we -- first and foremost, you have to have a sustainable business and it needs to be driving towards that profitability. So look, we've obviously got a huge amount of cash receipts that we need to collect this year depending on that timing. We'll look at that. We obviously can pull some levers on operational efficiencies. We've got a plan there to reduce the cash burn by 50%, which will extend our runway. And we'll manage the business in accordance to what the business needs. So I know that, that's not an answer, but we have no specific plans today to run out and do a raise. But what we will be doing is, obviously, if you look at the conditions and as we get clarity over the business, we will constantly reassess and that's what the Board does and that's what the executive does and that's why you put out your faith in us to drive the business forward. What I can say is that we're all in a position now where a lot of hard work has been done, and we're expecting to reap the rewards of that over the next 12 to 18 months and drive the business into a position where it's accelerating. And as we said on that 4 or 5 -- 3 to 4 to 5 years, that's what we want, an accelerated growth business. We think that's going to be rewarded in the end, and we want to dominate our area of the market. So a typical answer that you would expect, but we're monitoring it. We're actively doing things. We're running it by the books, and we'll respond as we need to.

And if you look at where we're going with the outlook statement, again, having a minimum commitment of $9.5 million, definitely takes a little bit of pressure off the monthly cash flow. And we, again, are targeting cutting that in half. And so I think we mentioned in the release that we were $800,000 or $850,000 last month -- in last quarter -- I'm sorry, last fiscal year average of where our cash burn was. And so cutting that in half, you start to look at where the burn is for the annual basis, and it starts to fall in line with where our cash proceeds are right now. But again, we're going to do what's right for the business as we go forward. And then you take that on top of any future growth within the revenue, again, if we can show 60% revenue growth at a dead minimum of $7.5 million, which is already locked in, that it's just the rules of accounting and how we accept that revenue across, that will continue to drive awareness and visibility within defense as well as Microsoft and other areas across the business.

Yes. So we've got a great platform to leap off to start FY '23. There's no doubt about that. But we also know that the market out there has been throwing curveballs. There's the war in Ukraine, the economic conditions. There's the geopolitical situation. It's going to continue to throw curveballs. We know that. So as I said, we'll make sure that we respond to all of the events in a very -- a way that's going to support the business growth.

We have probably time for one more question, Dan. Any updates on our M&A strategy?

Yes, sure. Look, as we have always said, we are not out there just to buy to grow. We have been very strategic about what M&A opportunities we look at. We continue to look for the right M&A opportunities, and in this current market conditions, those opportunities do exist, but it has to be the right strategic fit for archTIS. And right now, we're focusing on, as I said, executing that historic high pipeline, and that's where we're going to stay focused on. And if those opportunities arise, which can either accelerate growth, increase annual recurring revenues in the right ways, we're obviously open to looking at it.

All right. Great, Dan. Any closing thoughts or statements?

No, I'd just like to really thank all of our shareholders for their continued support. And I'm very chuffed by the validation that defense has given us. I've had many calls from investors saying, "Wow, this -- you guys are really starting to turn the corner." I'm glad that sentiment is out there, and I'm very happy with the progress that we've made. And on top of that, I'd also like to thank the hard work inside of archTIS itself. They're really driving this company to new heights. And again, I look forward to presenting the audited accounts at our next webinar and go through some of the strategy in the detail with you about how we're going to execute and achieve the goals that we're searching for.

Great. Well, thank you, everybody, for your time. We really appreciate it. And below, please feel free to forward any other questions to investors at archtis.com, and we'll do our best to get them all answered, and we really look forward to presenting to you the FY '23 continued strategy in late August. Thank you very much, and enjoy the rest of the day.

Thank you.